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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Xstrata | XTA | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 963.50 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 963.50 | 963.50 |
| Top Posts |
|---|
Posted at 23/11/2012 09:27 by umitw What will be the effects of the merger for the investors guys? |
Posted at 11/11/2012 07:06 by bigbigdave STXstrata plots coup at Lonmin EXECUTIVES at Xstrata are attempting to orchestrate a management coup at Lonmin, the platinum producer that was shut down after 34 striking workers were killed by police. Lonmin last week launched an $817m (£514m) rescue fundraising. Xstrata, the FTSE 100 miner, is its largest investor with a 25% stake. It does not want to stump up the cash unless it can clear out the executive team. The world's third-largest platinum producer has been hit by a falling commodity price, soaring costs and staff unrest. Xstrata is sitting on a $2.5bn loss thanks to the collapse of the share price. If it cannot inspire a coup before the fundraising, which will be voted on at a meeting on November 19, Xstrata is likely to call an extraordinary meeting to sack management. The situation is further muddied by the vote the next day on Xstrata's $33bn takeover by rival Glencore. The deal would see Xstrata subsumed into the commodities trader to create a natural resources behemoth with more than 100,000 employees on five continents. Its fate hinges on a complex voting structure. Xstrata wants to pay £173m in bonuses to about 70 executives. It says the payments are necessary to ensure they stay on and make the integration a success. Big investors, however, were outraged by the payments and threatened to block the entire deal on principle. Xstrata responded by offering three choices, in two parts. The first part allows investors to vote on two options, either in favour of both the takeover and the bonuses or, alternatively, to approve the bid but vote down the executive windfalls. Once those votes are in, investors will be given a final vote on the remuneration proposal alone. The problem is that the votes must match up. For example, if shareholders in the first voting round approve both the deal and the bonuses, but then a majority votes "no" in the separate pay ballot, the takeover will fail. There is a real danger that Xstrata's attempt to push through the bonuses could make the whole deal collapse. Both Glencore and Xstrata declined to comment. |
Posted at 02/10/2012 09:25 by inki A well written viewpoint:Lex in the Financial Times casts its eye over the long drawn-out Glencore/Xstrata saga and is not happy with Xstrata's behaviour. Xstrata's management looks to have held investors to ransom with its veiled threat to leave, yet it was technically the board that wanted a retention package. The £140m at stake is a side show, but the fracas caused almost sank the deal. That it has taken Xstrata's panoply of fee-grabbing advisers and board so long to put investors first is a disgrace. Will the merger happen, asks Lex. The market ratio is edging higher, and the reality is that Xstrata shareholders have more say under the current plan than they would if Glencore came back with a normal offer next year by which time Glencore's balance sheet, the commodities cycle and Xstrata's board make-up are anyone's guess. |
Posted at 30/9/2012 13:05 by careful it is impossible to work out the value to xta investors as it depends upon the glen share price.if the market likes it, the slightest hint of increased world growth would see them both rise significantly. |
Posted at 02/9/2012 12:59 by careful you cannot listen to what either party says.xta investors would accept 3.0 or even 2.95 i would guess. glen shares would rise taking xta with them. glasenberg said to a large shareholder this weekend that he would not meet their price. he did not say that he would not raise the offer. |
Posted at 01/9/2012 10:45 by declan2 Seems like 3.2 is the minimum for the big investors. GLEN won't give that. Expect a big sell off.Shares in commodities trader Glencore soared by almost 8 per cent yesterday as chief executive Ivan Glasenberg vowed to buy miner Xstrata even if the deal takes longer to complete. The merger looks likely to collapse next week as Qatar's sovereign wealth fund and other large shareholders have said they will vote down the all-share offer. But Glasenberg's remarks that he would play a long game if necessary and speculation that Glencore might offer a small last-minute sweetener next week to clinch the deal boosted both companies' stock. Glencore was up 27.6p at 385.1p and Xstrata added 51.2 to 952.2p. |
Posted at 30/8/2012 10:13 by alan@bj From today's Times:-Bid arbitrageurs make a living exploiting price discrepancies in takeover bids, going "long" of the target's shares and "short" of the bidder's, making a small turn. The practice is seen as low-risk but get it wrong and the financial consequences can be painful. So news that one arb has thrown in the towel and closed his short position in Glencore at a loss, as we revealed yesterday, suggests a growing mood in the market that the trading house's takeover of Xstrata is a dead duck. Xstrata shares were last night worth 2.44 Glencore shares, well below the 2.8 ratio offered by Glencore and way off the 3.25 sought by Xstrata's second biggest investor, Qatar Holding. With investors assuming the deal will collapse, unless Glencore raises its terms significantly, some are now actively canvassing each other about what should happen at Xstrata next and which heads should roll. The casualty is unlikely to be Mick Davis, Xstrata's chief executive, who was pilloried during the bid process for accepting an egregious retention package. His departure is seen is harmful for a standalone Xstrata. But the chairman, Sir John Bond, is vulnerable. Not only did he approve the package, he is also seen as not having fought hard enough to secure better terms from Glencore in the first place. Moreover, ill-feeling lingers from his time at Vodafone, where he faced a shareholder revolt in 2010. |
Posted at 28/3/2012 23:13 by the ballcock The US investor broke its silence and said it will support the controversial deal despite months of complaints from other investors. Xstrata's shareholders have complained they are being short-changed by the terms Glencore has proposed.Standard Life, Schroders and Allianz Global Investors have all publicly come out in opposition, with a clutch of other shareholders also vowing to vote down the "Glenstrata" mega-merger. But BlackRock, which is Xstrata's second biggest shareholder, has now publicly said the structure of the deal is better for both companies. BlackRock owns a 6pc stake in Xstrata through a mixture of traditional funds and index-linked funds. Catherine Raw, who co-manages BlackRock's $14bn (£9bn) World Mining Fund, said she supports the bid to join the two FTSE 100 companies in what is billed an all-share "merger of equals". Related Articles Xstrata shareholder scorns Glencore deal 08 Mar 2012 Xstrata investors 'to call Glencore's bluff' over £50bn offer 07 Mar 2012 Steel industry flags 'Glenstrata' deal worries 17 Feb 2012 Glasenberg shuns Glencore-Xstrata investor road show 12 Feb 2012 Xstrata merger 'could cost Glencore £25bn' 03 Feb 2012 Under the terms of the deal, Glencore is offering 2.8 of its own shares for every Xstrata share, which Xstrata investors say is too low, given Glencore's shareholders will get the larger share of the combined group. Ms Raw was not in that camp. "If you were to ask me today whether or not the natural resources team would accept the offer, then yes, we would," she told Bloomberg. "In terms of the natural resource team's view, we see the joint entity as being a better solution for both companies." However, many investors say their objections are not about the rationale behind a merger - but rather the structure of the deal. Neil Dwane, chief investment officer of RCM, the equities unit of Allianz Global Investors, said last month: "We feel the deal not only undervalues Xstrata [but] we are being offered unattractive [Glencore] paper." Questions have also been asked about the deep-rooted economic interests BlackRock has in Glencore. When Glencore floated last May, BlackRock was one of a small group of cornerstone investors that made the IPO possible, committing $360m at the time of flotation. But BlackRock's relationship stretches back to when plans for a merger with Xstrata began to be formulated by Glencore chief executive, Ivan Glasenberg. In 2009 Blackrock helped inject $2.2bn into Glencore, which at the time was facing mounting pressure on its liquidity. The fund manager still collects 5pc a year in interest payments on its allocation of bonds, which are due to be paid at the end of 2014. Other Xstrata investors have privately said this has influenced their assessment of the deal. But Ms Raw stressed there were "differing views across the firm as to whether or not the deal is a good one" with more than one fund manager holding shares. |
Posted at 06/2/2012 00:54 by 7335dick February 5, 2012 9:30 pmGlencore pays a price for Xstrata deal By Javier Blas in Dubai and Sylvia Pfeifer, Anousha Sakoui and Jack Farchy in London Glencore is set to pay a larger premium than expected to seal its long-coveted merger with Xstrata, a move designed to defuse concerns among Xstrata investors about a cosy deal between the chief executives of the two companies. The companies over the weekend hammered out the terms of an agreement on an $88bn merger that would combine the world's leading trading house with one of the biggest mining groups. Under the agreement, which was still being finalised on Sunday night and is likely to be announced along with Xstrata's annual results on Tuesday, investors in the miner would receive 2.8 Glencore shares for every Xstrata share they hold. That ratio puts a greater relative value on Xstrata shares than most analysts or investors had expected, representing an 8 per cent premium over the closing share price on Wednesday, when the ratio was 2.59. Ivan Glasenberg and Mick Davis, the chief executives of Glencore and Xstrata, respectively, have also agreed the make-up of the combined company's board and senior management. Sir John Bond, Xstrata's chairman, will stay on as chairman of the enlarged group, while Tony Hayward, the former chief executive of BP, will be the senior independent director, according to people familiar with the negotiations. Trevor Reid of Xstrata is likely to be chief financial officer, with Mr Davis becoming the chief executive and Mr Glasenberg deputy chief executive. The people warned, however, that the terms of the deal could still change. The agreement marks the culmination of years of negotiation and sparring between Mr Glasenberg and Mr Davis, both known for their powerful egos. It comes after some Xstrata shareholders, including Schroders, the UK fund manager, called for a larger premium to compensate for ceding control of their company. Glencore's current shareholders would own 56 per cent of the combined group, with Mr Glasenberg becoming the largest shareholder with a 9 per cent stake. He and his 12 closest lieutenants at Glencore would control more than a quarter of the combined company, the world's fourth-largest miner by market value and the leading producer of zinc, lead and ferrochrome, according to FT estimates. People familiar with the negotiations said Mr Davis had pushed for a higher valuation for his company. "Mick has been able to extract a significant premium from Ivan," said one person directly involved. The relative valuation of the two companies has fluctuated since the trading house's $10bn flotation in May, with Glencore briefly eclipsing Xstrata in size as share prices tumbled last autumn. The deal, which both companies have described as a "merger of equals", is set to be implemented via a so-called "scheme of arrangement", which requires 75 per cent of shareholders to agree. This would differ from an offer to shareholders, which would only require 50 per cent. Three quarters of Xstrata's shareholders would have to approve the deal with Glencore's 34 per cent holding unable to vote meaning that only 16.4 per cent of Xstrata's shareholders need to vote against the deal to block it. Nonetheless, people involved in the discussions are confident of broad-based acceptance from shareholders, noting that many of the large institutional shareholders in Xstrata also own Glencore shares. Additional reporting by Helen Thomas |
Posted at 31/8/2010 11:16 by roman2325 Interesting article on Bloomberg:Titan Capital Joins Black Swan's Taleb in Raising Bets on Crash By Netty Ismail - Aug 30, 2010 Titan Capital Group LLC, whose flagship volatility fund rose 21.6 percent as stocks tumbled in May, has raised bets on extreme market moves because investors' views on the economic outlook have polarized. The New York-based hedge fund, which manages about $400 million, has added "a lot more" cheap, out-of-the-money options, betting the market is underestimating the likelihood of a crash, founder Russell Abrams said in a phone interview. Treasuries, German government bonds and Japan's yen are pricing in economic outcomes that are bleaker than the stock market expects, said the former co-head of U.S. equity derivative trading and convertible arbitrage at Merrill Lynch & Co. "They are pointing to a much more dangerous environment than what equity investors believe," he said in an interview Aug. 27. "Either you're going to see the bond market make the the big move or the equity market make the big move; the current situation is not in equilibrium." Nassim Nicholas Taleb, whose book "The Black Swan" is about how unforeseen events can roil markets, said Aug. 11 he is "betting on the collapse of government bonds" and that investors should avoid stocks. Government bonds around the world have rallied on growing signs the global economic recovery is faltering, driving yields on two-year Treasury notes as well as German 30-year and 10-year bonds to record lows last week. The yen reached a 15-year high of 83.60 per dollar Aug. 24. The Standard & Poor's 500 Index gained 9.4 percent from July 1 until Aug. 10, when the Federal Reserve said that growth probably will be "more modest." 'Greater Risks' "When you have assets so highly correlated, that makes the risks far, far greater," said Abrams, who worked with the late Fischer Black researching derivative strategies at Goldman Sachs Group Inc. from 1992 to 1993. Black and Myron Scholes developed the Black-Scholes model of pricing options. Out-of-the-money options are puts and calls whose strike price is either lower or higher than the market price of the underlying security. An agreement to sell is a put option; an agreement to buy is a call option. Funds such as Titan Capital tend to outperform when markets are falling because they trade on volatility, which increases when prices decline. Volatility, as measured by the Chicago Board Options Exchange Volatility Index, was at a 14-month high in late May as the sovereign debt crisis swept through Europe. The Titan Global Return Fund gained 21.6 percent in May, according to a letter to investors. Hedge funds globally lost 2.7 percent during the stock market rout that month, their worst monthly drop since October 2008, according to Eurekahedge Pte. The fund gained 13.2 percent in the first six months of the year, according to the investor letter. 'Black Swan' The Chicago Board Options Exchange Volatility Index rose as high as 45.79 on May 20 as the S&P 500 lost 8.4 percent. The VIX, a measure of investor expectations for stock swings known as implied volatility, decreased to 27.37 Aug. 26. The financial system is riskier than it was before the 2008 crisis that led the U.S. economy to the worst contraction since the Great Depression, said Taleb, a professor at New York University who advises Santa Monica, California-based Universa Investments LP, a fund that bets on extreme market moves. Any relapse in the U.S. economy would be "far worse" than the previous recession, Abrams said. "The risk is that the government can't keep spending money to keep the economy afloat," he said. "The government's thrown everything and if they fail, the confidence will plunge much faster." Debt Woes U.S. President Barack Obama's American Recovery and Reinvestment Act spent $814 billion trying to spur growth. The U.S. government's total outstanding debt is $13.4 trillion, according to Treasury figures. As investors tend to become more risk averse later in the year, "any market downturn might lead to much higher volatility," Abrams said. Titan Capital, which managed almost $1 billion at the end of 2008 before the global financial crisis led to investor withdrawals, has opened an office in Hong Kong. Kyle Chuang, portfolio manager for Titan Asia Volatility Fund, relocated to Hong Kong from New York. Abrams founded Titan Capital in 2001. The fund is set to trade more Chinese securities as the nation "becomes a more mature market," Abrams said. It currently trades Chinese securities that are listed overseas. The nation is on the cusp of a "big bang" of reforms that will give foreign investors greater access to capital markets, Nomura Holdings Inc. analysts led by Hong Kong-based Sean Darby wrote in a report Aug. 18. The global fund allocates between 10 percent and 25 percent of its money to Asia and the remainder to the U.S., Abrams said. |
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